Kenyans living abroad will access various investment solutions through Credit Bank following a deal with the Kenya Diaspora Alliance (KDA).
Under the agreement, the lender will provide a bouquet of solutions in order to empower Kenyans living abroad to invest back home as diaspora remittances continues to grow outpacing Foreign Direct Investments in what Credit Bank Chief Executive Officer Betty Korir attributes this to the tremendous shift towards digital transformation within the financial sector.
“As Kenyans living abroad continue to invest locally, we seek to provide a seamless process, thus enhancing the customer experience and becoming the go-to bank when it comes to international money remittances,” said Korir.
CBK data shows that remittances rose 20.3% in the 12 months to July 2021 amounting to Kshs. 376.5 billion compared to Kshs. 317.2 billion during the same period last year.
North America is the largest source and accounting for 58.3% of remittance inflows into Kenya.
“I am delighted to seal this partnership today,” noted Dr. Shem Ochuodho, Global Chairperson of the Kenya Diaspora Alliance. It heralds yet another milestone, exactly 25 years since the internet was unveiled in this country. The diaspora has undoubtedly become the new sheriff in town, as the highest foreign exchange earner for the country,” said Dr. Shem Ochuodho, KDA Global Chairperson.
Ac-coding to Dr. Ochuodho remittances constitute 4% of Kenya’s GDP; and in at least two African countries, it constitutes as much as 15-35% of the GDP.
“African Americans alone have an estimated spending capacity of US$ 1.2 trillion, and a number of their business leaders have repeatedly said they want to do business with Africa, and invest some of it in Kenya. Partnerships like the one we are signing today will go a long way towards paving the pathways to attract and retain such investments,” stated Dr. Ochuodho.
Data from the World Bank indicates that contemporary African diaspora remits at least US$ 80 billion every year.